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Construction of power plants fails
Cumbersome planning procedures, a lack of legal know-how and poor-quality coal mean the country is unlikely to meet its five-year power plan, according to a recent conference in the capital.
Participants heard that every planned thermoelectric power plant was likely to be four to 10 years behind the 2015 deadline set under an electricity plan when 35.5 per cent of the country's electricity needs are meant to come from coal.
Nguyen Duc Thao, from the Viet Nam National Coal and Mineral Industries Group, blamed official red tape, particularly at the preparatory stage, for the delays.
Thao cited the case of Mao Khe thermoelectricity plant in northern Quang Ninh Province, which is likely to be two years behind schedule.
That view was supported by Trinh Thach, who is working on the Vinh Tan 2 thermoelectricity plant. He said it took a great deal of time for the plans to be approved by the authorities.
He said the State should devise systematic standards that would act as a blueprint for future thermoelectric plants.
Thach also said the State should permit investors to implement different stages of the project synchronously to speed up the work.
He said it had taken a year for the project to be approved by the National Assembly, which only meets twice a year.
Truong Duy Nghia, Deputy Chairman of the Viet Nam Science and Thermal Technology Association, said plans for the Song Hau thermoelectricity plant that were submitted in 2008 had yet to be approved because the investor had been asked to change the project's scale and location.
He added that the country's five-year electricity plan was unfeasible.
Nguyen Tien Dung, Deputy Director of the Viet Nam Energy Institute, cited the case of Ninh Binh 2 thermoelectric plant in Ninh Binh Province, which was to be relocated to Thai Binh Province because it failed to get approval from the provincial People's Committee.
Participants also said investors were often unfamiliar with local planning laws when submitting their tenders, which caused further delays.
Le Van Thanh, who is working at the Uong Bi thermoelectric plant, said it should have taken about three years to build the facility but Chinese contractors who were given the job of installing equipment for the plant had had to spend six months just familiarising themselves with legal procedures in Viet Nam.
Making matters worse, Hoang Tien Dung, Deputy Director of the Viet Nam Energy Institute, said because electricity prices were much lower in Viet Nam than in other parts of the region, investors were often forced to accept only the lowest, and not necessarily the best, tenders.
"How can you have unqualified contractors ensuring project progress," Dung said.
Irregular coal supplies and poor quality are also worrying investors.
Nguyen Tien Vinh, from the Viet Nam Natural Oil and Gas Group, said poor coal quality had made the cost of running a thermoelectric plant in Viet Nam more expensive.
The conference's findings have been submitted to the Ministry of Industry and Trade, which organised the meeting.
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